Last week was Deputy PMQs and while we were in China trying to build stronger relationships, it was also a chance to press the government on policy — including the hospitality U-turn that backed pubs but not restaurants.
What are MPs doing?
Andrew Griffith, leading the opposition’s attack, struggled to make the impact he intended. He mistakenly referred to the Speaker as the Deputy Speaker and accused David Lammy of looking ‘flustered’ — a claim that drew more amusement than authority. For an opposition MP with a strong line of attack on pubs and business rates, the delivery fell short.
I know he is the Shadow Trade Secretary and so he is bound to talk about that, but it was a generally poor performance.
At least this Deputy managed to count to six — unlike James Cartlidge last time, who failed to do so and ran out of questions.
Perhaps the inept delivery of the opposition helped David Lammy to keep his cool this time. As a Labour MP for 25 years, he was able to draw on all that and gave by far the better performance.
That said, his response on support for the pub trade, which included a reference to Late Payment Reforms, was perhaps not his wisest comment — unless, of course, some drinkers are still in the habit of not settling their tab.
So not a stellar performance by government nor opposition... and one has to question why there needed to be a U-turn anyway on something that must have been blatantly obvious when the budget was being set.
What the change means for pubs
The Government’s £300m support package — including a 15% business rates discount and a two-year freeze — has offered pubs a reprieve, but not a revolution. For many, the relief equates to around £1,500–£1,650 a year. That’s enough to cover a month’s energy bill or a part-time staff member, but not enough to shift the fundamentals.
What it does offer is predictability. After months of uncertainty, operators can now model their costs with a little more confidence. Several pub groups have said the package will “keep the doors open through 2026,” which is a polite way of saying it prevents immediate closures rather than securing long-term viability.
The psychological effect is just as important. After feeling ignored in the Autumn Statement, the sector now sees that its voice still carries weight. The U-turn has restored a degree of trust and signalled that pubs are still viewed as community assets, not just commercial units. That matters in rural and suburban areas where the pub is often the last remaining public space.
But the relief is narrow. Restaurants, cafés and hotels were excluded, and many pub operators worry that this creates a two-tier hospitality sector. The U-turn helps pubs survive the next two years — it does not solve the structural issues that made the U-turn necessary in the first place.
The Budget Before the U-turn: A Perfect Storm
Before the Government reversed course, the Autumn Statement landed like a hammer blow. Pubs were already operating on wafer-thin margins, and the Budget compounded every major cost pressure they face:
Energy bills remain high: Even after the worst of the crisis, energy costs are still far above pre-2020 levels. A typical village pub now spends 30–40% more on gas and electricity than it did five years ago.
Wages have risen: The increase in the National Living Wage is good for workers — and morally right — but it hits labour-intensive businesses hard. Pubs rely on flexible, part-time staffing, and wage inflation has outpaced revenue growth.
Business rates were set to rise sharply: Many pubs saw rateable value increases of 200–300% in the revaluation cycle. The Budget offered no sector-specific relief, meaning some pubs were facing thousands of pounds in additional annual costs.
Beer duty remains high: Duty on draught beer is still a major burden. For wet-led pubs, it’s one of the biggest cost lines after wages. The Budget did nothing to ease this pressure.
Footfall is inconsistent: The shift in working patterns — fewer office days, more home-based routines — has hollowed out midweek trade. Village pubs in particular now rely heavily on weekends and seasonal tourism.
Taken together, the Budget created a perfect storm. The U-turn didn’t fix these issues — it simply stopped them from getting worse.
What might village pubs do?
Build a Hyper-Local Offer
Village pubs thrive when they feel rooted in place. That might mean:
• local ales and ciders
local ales and ciders
• partnerships with nearby farms and producers
• seasonal menus that reflect the area
• events tied to local history, festivals, or traditions
• partnerships with nearby farms and producers
• seasonal menus that reflect the area
• events tied to local history, festivals, or traditions
Customers will travel for authenticity, not generic pub food.
Create Predictable, Habit-Forming Rituals?
Footfall improves when the pub becomes part of the weekly rhythm.
• Wednesday pie night
• Friday acoustic sessions
• Sunday family roasts with pre-booking
• loyalty schemes for locals
• early-evening “village hour” pricing
Summary
So the Government U-turned, the opposition stumbled, and the sector got a lifeline that feels more like a plaster than a cure.
Pubs remain under pressure — from rising costs, inconsistent footfall, and policy that too often treats them as symbols rather than systems.
But in village communities, they continue to adapt: hosting book clubs, pouring local cider, and offering warmth that no spreadsheet can measure: not even one prepared by CBSL Accountants!
If ministers want to support pubs, they should start by listening not just to trade bodies, but to landlords who know every name at the bar. And if pubs want to survive, they’ll need to keep doing what they’ve always done best — being useful, being local, and being loved.
